EANS-News: Hypoport AG Dr. Klein & Co. AG: Insurance companies expanding their
lending business
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Company Information/lending business
Subtitle: Insurance industry now accounts for almost 50 per cent of Dr. Klein's
commercial real-estate finance steady rise in number of insurers in the
lending business
Lübeck, (euro adhoc) - 30 June 2011: The German insurance industry has
significantly expanded its role as a lender in the commercial real-estate
finance business. This can be seen in the latest figures from Dr. Klein & Co.
AG's business with corporate clients.
In the first half of 2011, Dr. Klein brokered loans with a total volume of
EUR450 million. Almost half of this amount - EUR220 million - was accounted for
by insurers and pension funds, compared to 25 per cent in the first half of
2010. In contrast, the proportion accounted for by the banking sector has
declined. It is particularly noticeable that, for a while now, insurers have no
longer only been financing small residential property deals with a loan-to-value
ratio of up to 60 per cent. Finance partners are also being found in the
insurance industry for commercial real estate and large transactions in excess
of EUR50 million. However, the maximum loan-to-value ratio is 80 per cent;
insurers do not provide finance with higher ratios. There are diverse reasons
for this strong expansion of business. Firstly, investment managers at insurance
companies and pension funds are interested in investments that are low risk and
free of exchange-rate risk - and they have discovered the German real-estate
industry. Secondly, less effort is involved in financing real estate than
purchasing it. "It's not a flash in the pan", says Hans Peter Trampe, member of
the Management Board responsible for this area at Dr. Klein & Co. AG. "The
banking sector will have to adjust to far tougher competition from the insurance
industry, especially in light of Basel III and Solvency II."
There have also been a number of changes in how financing is handled. Although
insurers still only offer long-term finance, they have made their other lending
and contractual conditions considerably more flexible and are also catering to
customers' individual needs. Nevertheless, the requirements set by each
insurance company vary significantly. Whereas some insurers prefer to spread
risk widely and will not provide finance of more than EUR5 million, others are
specifically focusing on deals in excess of EUR50 million. The total number of
insurance companies that are becoming lenders is rising all the time. This can
also be seen in the latest figures from Dr. Klein & Co. AG.
About Dr. Klein & Co. AG
Dr. Klein is an independent provider of financial services for private and
institutional clients.
For private clients, Dr. Klein identifies the ideal products to suit their
individual finance-related requirements. Some 550 experts offer advice focusing
on all issues relating to current accounts and call money, insurance policies
and financial investments, or mortgage financing and private loans. The service
is provided over the internet and in more than 180 branch offices. The company
is not affiliated to any specific providers.
Dr. Klein & Co. AG has been a preferred partner for the provision of financial
services to the residential property industry, municipal clients and commercial
real estate investors since 1954. Dr. Klein offers its institutional clients
comprehensive support, competent advice and customised concepts for financial
and portfolio management and business-related insurance policies.
Its client-oriented consulting expertise and long years of working closely with
all well-known credit and insurance companies ensure that Dr. Klein always has
the simplest access to the best possible financial services. Dr. Klein is wholly
owned by Hypoport AG, the internet-based financial services provider that is
listed on the Frankfurt Stock Exchange.
Further inquiry note:
Dr. Klein & Co. AG
Michaela Reimann
Group Communications Manager
Hansestrasse 14
23558 Lübeck
Phone: +49 (0)30 420 861 936
Email: michaela.reimann@drklein.dewww.drklein.de
end of announcement euro adhoc
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company: Hypoport AG
Klosterstraße 71
D-10179 Berlin
phone: +49(0)30 42086-0
FAX: +49(0)30 42086-1999
mail: ir@hypoport.de
WWW: http://www.hypoport.de
sector: Financial & Business Services
ISIN: DE0005493365
indexes: CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English